Abandoned Vessel Prevention Act
The Abandoned Vessel Prevention Act would add a new liability provision to Title 46 of the U.S. Code. It makes the seller (transferor) of a decommissioned commercial vessel responsible for certain costs if the vessel is transferred to another person for use as a recreational vessel, the transferee lacks the required insurance at the time of transfer, and the vessel sinks on navigable waters. The liability applies to specified expenses such as damages from sinking, removal and debris cleanup, pollution cleanup, and related shutdowns or repairs to water intake pumps caused by pollution. There are important exemptions: (1) the transferor is not liable for small or older vessels (less than 35 feet in length or fewer than 40 years old), and (2) the transferor is not liable if the transferee has insurance applicable to the vessel for a 12-month period beginning on the transfer date that covers the specified expenses. The act defines key terms (commercial vessel, covered vessel, recreational vessel, and specified expenses) and adds a new section to Chapter 301.
Key Points
- 1Creates new liability: A transferor of a covered vessel to a recreational user is liable for specified expenses if the vessel sinks and the transferee lacks insurance at the time of transfer.
- 2Exemptions: Liability does not apply if the vessel is under 35 feet long or 40 years old or younger, or if the transferee has qualifying insurance for 12 months covering the specified expenses.
- 3Definitions:
- 4- Commercial vessel: defined as in IRC section 4462(a)(4).
- 5- Covered vessel: a current commercial vessel or a recreational vessel that was previously a commercial vessel.
- 6- Specified expenses: damages from sinking plus removal of the vessel/debris, pollution cleanup, and any required shutdown/repair of a water intake pump due to pollution.
- 7- Recreational vessel: defined as in 46 U.S.C. §2101.
- 8Administrative change: Adds a new section 30107 to Chapter 301 and updates the table of sections accordingly.
- 9Purpose: Aims to deter abandonment or transfer of decommissioned commercial vessels without ensuring the new owner has adequate insurance.